Hasbro, Inc.

Based on a comprehensive analysis, Hasbro (HAS) presents a mixed but ultimately compelling case with a clear near-term catalyst.

Technical & Fundamental Outlook Technically, HAS exhibits powerful bullish momentum, significantly outperforming the market despite being technically overbought near its 52-week high. Fundamentally, while the company carries high debt leverage, it maintains adequate liquidity and interest coverage. The recent compression in profit margins is a concern, but the strong operational efficiency and anticipated return to profitability, as reflected in the reasonable forward P/E ratio, are positive signs.

Valuation & Risk Assessment Valuation sends conflicting signals; the negative trailing P/E and high Price-to-Book ratio are red flags, but the forward P/E of ~14.4 suggests the market is pricing in a recovery. Risks are moderated by the stock's low beta and lack of significant short interest, though its cyclical nature and high debt load require monitoring.

Buy Recommendation HAS is worth considering for a buy. The combination of explosive price momentum, a reasonable forward valuation anticipating a profitability turnaround, and manageable near-term risks creates a positive setup. Investors should be aware of the overbought technical conditions and high leverage, but the stock-specific catalysts appear to be driving a strong narrative. This is not investment advice, for reference only.

RockFlow Model Forecast: Three Scenarios for 2026

Based on a comprehensive analysis, Hasbro's 12-month outlook is cautiously optimistic, driven primarily by its ongoing strategic turnaround.

The key catalysts will be the continued execution of its strategy to focus on its core toy and game brands, coupled with efforts to revitalize its entertainment division through successful film and television releases tied to its intellectual property. Potential risks remain significant, including the company's high debt load, which could pressure finances if profitability recovery stalls, and the persistent challenge of weak consumer spending affecting overall toy demand. With analyst targets unavailable, the outlook hinges on the company successfully navigating these risks to achieve its projected profitability, which the current forward P/E suggests is priced in.

Wall Street Consensus

Most Wall Street analysts are optimistic about Hasbro, Inc.'s 12-month outlook, with consensus target around $101.00, indicating expected upside potential.

Overall, HAS has investment potential but also faces challenges. Here are key factors to weigh before investing.

Of course. Here is the technical analysis of HAS's price performance.

Overall Assessment HAS has demonstrated exceptionally strong bullish momentum, significantly outperforming the market over the past three months.

Short-term Performance The stock has delivered explosive returns, with a 17.65% gain in one month and a 30.35% surge over three months. This performance is particularly impressive given its low beta of 0.549, indicating the gains are driven by strong stock-specific catalysts rather than overall market volatility. The 30.37% relative strength versus the market confirms this substantial outperformance.

Current Position Trading at $102.23, HAS is near the top of its 52-week range ($49 - $106.98), placing it in a technically overbought territory. While this indicates powerful momentum, the proximity to the 52-week high and the significant 26.57% maximum drawdown from the past year suggest the stock may be due for a consolidation or pullback as it tests resistance.

Revenue & Profitability Revenue increased 4.2% sequentially from Q3 to Q4 2025, while net profit margin declined from 16.8% to 13.9%. This compression appears driven by higher other expenses in Q4, resulting in a lower operating income ratio of 22.3% compared to 24.6% in Q3. Overall profitability remains solid but showed pressure in the latest quarter.

Financial Health The company carries significant leverage with a debt-to-equity ratio of 4.9 and total debt to capitalization of 83%. However, the interest coverage ratio of 8x indicates adequate earnings to service debt, while current and quick ratios above 1.2 suggest sufficient short-term liquidity. The cash flow to debt ratio of 0.15 suggests moderate capacity to repay obligations from operating cash flows.

Operational Efficiency Hasbro demonstrates strong operational efficiency with an ROE of 35.7%, though this is amplified by high financial leverage as shown by the equity multiplier of 9.8. The asset turnover of 0.26 appears modest, while the cash conversion cycle of 51 days indicates reasonable working capital management. Inventory turnover of 1.7 suggests room for improvement in inventory management efficiency.

1. Valuation Level Analysis

Based on the negative trailing PE ratio of -44.64, HAS is currently unprofitable on a trailing twelve-month basis, rendering the PE ratio meaningless for valuation. However, the forward PE of approximately 14.43 suggests the market anticipates a return to profitability. This forward multiple appears reasonable and could indicate undervaluation if earnings projections are met, but the negative PEG ratio of -1.04 signals that expected earnings growth is also negative, which is a significant cause for concern.

2. Peer Comparison

Without specific industry average data, a precise peer comparison is unavailable. Generally, a forward PE of 14.4 is below the broad market average (often around 18-20), suggesting potential undervaluation relative to the overall market. However, the extremely high Price-to-Book ratio of 33.14 and elevated EV/EBITDA of 38.45 are typically associated with overvaluation, indicating the company's assets are not generating substantial earnings or cash flow relative to its market price.

Volatility Risk HAS demonstrates below-market volatility with a beta of 0.549, indicating it is historically less sensitive to broad market swings than the average stock. However, its one-year maximum drawdown of -26.57% reveals notable downside risk during unfavorable periods, despite lower beta. This suggests that while volatility relative to the market is modest, the stock can still experience significant declines amid company-specific or sector headwinds.

Other Risks The absence of significant short interest implies that speculative bearish sentiment is minimal at present. Nevertheless, investors should monitor liquidity metrics and underlying business fundamentals, such as consumer spending trends and competitive pressures, given the toy industry's cyclical nature. Overall, near-term short-selling pressure appears low, but broader industry and economic risks remain relevant.